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Charting Downtown Revitalization in the Flagship City
APAPA Annual Conference
October 15, 2012
Charting Downtown Revitalization in the Flagship City
Introductions
URBAN PARTNERSURBAN PARTNERS
Brenda Sandberg
Director
Dept of Economic & Community Development
City of Erie
Christopher Lankenau, AICP
Senior Associate
Urban Partners
Charting Downtown Revitalization in the Flagship City
Topics
� Downtown Revitalization in Erie
� Recent Downtown Progress
� Current State of Affairs
� Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Downtown Revitalization in Erie
Erie Downtown Partnership
� Created in 2004 with a 5 year sunset clause. An un-contested renewal occurred in July 2009 allowing the organization to exist through 2019.
� Created to address the needs of downtown businesses that were not being met by any other agency. Events, maintenance, advocacy, grant writing, etc.
� Continually works in partnership with the City of Erie and the Erie Redevelopment Authority.
� Each property owner is required to pay an annual assessment in the amount of ¼% of the property value. Annual assessments are capped at $3,000 per property.
Charting Downtown Revitalization in the Flagship City
Downtown Revitalization in Erie
Erie Downtown Master Plan
� Completed in 2006
� Set the stage for several completed major downtown projects
� The market analysis portion was updated in 2012 with the intent of
development of a Master Plan update
Charting Downtown Revitalization in the Flagship City
Downtown Revitalization in Erie
PLAN…..PLAN…..PLANStreetscape – 2010Perry Square – 2008Griswold/Union Station - 2007
Charting Downtown Revitalization in the Flagship City
First Actions
� Forge Public Private Partnerships
� Business Retention & Attraction Program
� Mercantile Building design & financing
� Concept Plans for Griswold Park/Union Square
� Streetscape Improvements
� Main Street Designation
Intermediate Actions
� Construct improvements planned for in First Actions
� Identify potential developer for “Industrial Chic area”
� Concept Plans for Perry Square
� Identify developers for Bluff Condominiums
� Façade Grant program
Downtown Revitalization in Erie
Master Plan Actions
Charting Downtown Revitalization in the Flagship City
Recent Downtown Progress
Bayfront Convention Center and Sheraton Hotel
� 145,000 SF of space
� 200 hotel rooms
Charting Downtown Revitalization in the Flagship City
Erie Insurance Arena
Jerry Uht Park
Warner Theater
Recent Downtown Progress
Charting Downtown Revitalization in the Flagship City
New Downtown Housing
� Mercantile Building Condominium Units:
� 11 units sold
� 3 units remain for sale
� Union Square Townhouse Units:
�Will involve 140 units, retail and off-street parking
� First phase of 7 units under construction, deposits for sale have already occurred
� Various affordable projects with Port Harbor Homes
� All new market not available prior to 2006
Recent Downtown Progress
Charting Downtown Revitalization in the Flagship City
Recent Downtown Progress
Gannon University Expansion
� Erie Technology Incubator
� Zurn Science Center
� Morosky Academic Center
Charting Downtown Revitalization in the Flagship City
Recent Downtown Progress
Bayview Centre
� Class A office building
� 75,000 SF
Charting Downtown Revitalization in the Flagship City
Recent Downtown Progress
Hamot Medical Center Expansion
� Women’s Hospital
� Heart Institute
Charting Downtown Revitalization in the Flagship City
Recent Downtown Progress
Erie Art Museum Expansion
� Erie’s first LEED-certified building
Charting Downtown Revitalization in the Flagship City
Greater Downtown
Erie Downtown Partnership Service Area
State of Affairs
� Demographics
� Housing Market
� Retail Market
� Office Market
� Hotel Market
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
-0.1%-277280,566280,843Erie County
-1.9%-1,931101,786103,717Erie City
-4.2%-1,65837,75739,415Greater Downtown Erie
-5.5%-1472,5432,690Erie Downtown Partnership Service Area
% Change
2000-2010 Change20102000Area
Population
State of Affairs – Demographics
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
4.2%4,816119,138114,322Erie County
-0.4%-18144,97044,971Erie City
-3.5%-63017,13417,764Greater Downtown Erie
3.5%491,4451,396Erie Downtown Partnership Service Area
% Change
2000-2010 Change20102000Area
Housing Units
State of Affairs – Demographics
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
92.7%93.2%110,413106,507Erie County
91.3%91.0%40,91340,938Erie City
87.4%86.2%14,98015,135Greater Downtown Erie
93.7%87.0%1,3541,214Erie Downtown Partnership Service Area
Occupancy Rate 2010
Occupancy Rate 200020102000Area
Housing Occupancy
State of Affairs – Demographics
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
66.9%69.2%73,84773,729Erie County
52.3%56.2%21,40822,997Erie City
29.0%33.8%4,3455,172Greater Downtown Erie
1.1%1.1%1513Erie Downtown Partnership Service Area
Occupancy Rate 2010
Occupancy Rate 200020102000Area
Housing Owner-Occupancy
State of Affairs – Demographics
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
$95,0003,941$112,9002,182Erie County
$92,5002,839$77,000747Erie City
$56,000382$49,000101Greater Downtown Erie
N/AN/A$00Erie Downtown Partnership Service Area
Median Sales $
1/05-12/05Total Sales 1/05-12/05
Median Sales $
1/11-12/11Total Sales 1/11-12/11Area
Single-Family Housing Sales
� 1/3 of homes sold in Greater Downtown were to investors
� Highest 2011 price in Greater Downtown: $154,000
� Highest 2011 price in City: $650,000
� Highest 2011 price in County: $1,645,000
State of Affairs – Housing Market
Charting Downtown Revitalization in the Flagship City
U.S. Census Bureau
$106,00029$177,90095Erie County
$106,00023$170,00017Erie City
$105,0007$147,9001Greater Downtown Erie
N/AN/A$147,9001Erie Downtown Partnership Service Area
Median Sales $
1/05-12/05Total Sales 1/05-12/05
Median Sales $
1/11-12/11Total Sales 1/11-12/11Area
Condominium Sales
� 4% of housing units sold in Erie County were condos – up from 1% in 2005
� Most were larger than 2,000 SF
� 2% of units sold in the City were condos – up from <1% in 2005
� 70% were smaller than 2,000 SF
� Highest price condo was $500,000 (in the City)
State of Affairs – Housing Market
Charting Downtown Revitalization in the Flagship City
Downtown Housing Survey
� On-line survey conducted through Erie Downtown Partnership’s website
� 144 people completed survey
� 42% interested in living Downtown if attractive, affordable housing were available
� An additional 9% would be interested if financial incentives were available
� Based on results, ~90% of interested respondents fall into five “clusters”:
� Young Relocating Owners (35 and under) – 19%
� Older Relocating Owners (majority 55 and older) – 19%
� Prospective Owners with annual household income <$50,000 – 18%
� Relocating Owners with annual household income >$100,000 – 12%
� Prospective Renters – 23%
State of Affairs – Housing Market
Charting Downtown Revitalization in the Flagship City
Renter Housing
� Rental housing was 33% of housing market in the County, 48% in the City, 71% in Greater Downtown, and 99% in EDP service area in 2010
� Rental housing in Downtown Erie has 3 segments: university student housing, subsidized rental housing, and market-rate housing
U.S. Census Bureau
11.6%3,78836,56632,778Erie County
8.7%1,56419,50517,941Erie City
4.9%49210,63510,143Greater Downtown Erie
11.4%1381,3391,201Erie Downtown Partnership Service Area
% Change
2000-2010 Change20102000Area
State of Affairs – Housing Market
Charting Downtown Revitalization in the Flagship City
Retail Supply – Erie Downtown Partnership Service Area
106
1
7
5
8
0
18
67
# of Stores
457,700
6,000
48,800
74,100
24,000
0
82,400
222,400
Gross Leasable Area (SF)
0Department Stores
$5,693,000Apparel
$10,360,000Home Furnishings
$8,318,000Other Specialty Goods
---Other Retail Stores
$90,561,000Total
$18,734,000Full-Service Restaurants
$47,036,000Community-Serving Goods/Services
Retail SalesRetail Category
� There were 98 retailers in 2006 occupying 442,500 SF of space
� Growth was in restaurants and bars – now total of 58
� Take up half of occupied store space and generate 54% of all sales Downtown
State of Affairs – Retail Market
Charting Downtown Revitalization in the Flagship City
Retail Supply – Greater Downtown
300
14
20
24
13
1
32
196
# of Stores
1,047,800
48,300
77,800
160,600
32,500
25,000
114,800
588,800
Gross Leasable Area (SF)
$4,000,000Department Stores
$7,506,000Apparel
$28,727,000Home Furnishings
$13,568,000Other Specialty Goods
$9,339,000Other Retail Stores
$227,892,000Total
$25,657,000Full-Service Restaurants
$139,095,000Community-Serving Goods/Services
Retail SalesRetail Category
� There were 328 retailers in 2006 occupying 1,122,800 SF of space
� Loss of 24 eating/drinking establishments outside of EDP area since ‘06
� Modest increase in apparel stores (4) outside of EDP area since ‘06
State of Affairs – Retail Market
Charting Downtown Revitalization in the Flagship City
Retail Demand
$210,753,000
$5,625,000
$10,153,000
$23,021,000
$9,437,000
$40,984,000
$11,324,000
$110,209,000
Greater Downtown Residents
$52,389,000
---
$3,038,000
$3,779,000
$2,837,000
$2,762,000
$6,795,000
$33,178,000
Downtown Employees
---Department Stores
$13,871,000Apparel
$18,822,000Home Furnishings
$18,512,000Other Specialty Goods
$2,178,000Other Retail Stores
$90,561,000Total
$25,135,000Full-Service Restaurants
$94,854,000Community-Serving Goods/Services
Greater Erie County
ResidentsRetail Category
State of Affairs – Retail Market
Charting Downtown Revitalization in the Flagship City
Retail Demand
$357,996,000
$7,803,000
$31,703,000
$45,622,000
$26,145,000
$43,747,000
$43,254,000
$159,723,000
Total Market Potential (Demand)
$227,892,000
$9,339,000
$13,568,000
$28,727,000
$7,506,000
$4,000,000
$25,657,000
$139,095,000
Current Greater Downtown
Sales (Supply)
---Department Stores
66,000Apparel
49,000Home Furnishings
41,000Other Specialty Goods
3,000Other Retail Stores
337,000Total
54,000Full-Service Restaurants
124,000Community-Serving Goods/Services
Total Development
Opportunities (SF)Retail Category
State of Affairs – Retail Market
Charting Downtown Revitalization in the Flagship City
Retail Capture and Development Potential
337,000
32,000
44,000
51,000
51,000
54,000
105,000
Total Development Opportunities
(SF)
198,000
15,000
21,000
28,000
25,000
54,000
55,000
Reasonable Opportunities for Downtown
(SF)
Specialty Apparel
Community Resident Needs
Regional Specialty Goods
Student/Employee Market Specialties
Total
Full-Service Restaurants
Supermarket
Retail Category
State of Affairs – Retail Market
Charting Downtown Revitalization in the Flagship City
� Highest quality office space (Class A) tends to be in owner-occupied single-user buildings for major employers
� Others include 100 State Street and Bayview Office Park
� Rents tend to range between $15 and $19 per SF
� Downtown has many Class B properties including Lovell Place and the Renaissance Centre
� Rents range between $8 and $12 per SF
� Several occupancies exist in Class A and B buildings but market has been relatively stable
State of Affairs – Office Market
Charting Downtown Revitalization in the Flagship City
� Analysis focuses on an area extending about 5 miles from downtown
� Includes 30 hotels totaling 3,224 rooms
� Newest hotels opened in 2007 and 2008 (5 hotels totaling 620 rooms)
� Occupancy rate rose to 61.3% by 2011 after dropping with new supply
� Room rates rose from $73.50 in 2005 to $88.59 in 2011
� During 2011, rooms were >80% occupied every night in July and August except Sunday
� Average monthly occupancy for July and August was 84% and 85% respectively
� On Saturday nights, Erie hotels were more than 80% occupied during 8 months of the year
� Since 2007, annual growth in demand has averaged 22,000 room-nights per year
State of Affairs – Hotel Market
Charting Downtown Revitalization in the Flagship City
Housing Sales Market Potential
50 to 60 new units over next 5 years targeted to “young relocating owners” and first-time buyers, priced $140,000 to $170,000
Another 50 to 60 new units targeted to “older relocating owners”and owners with incomes over $100K, priced $130,000 to $250,000+
� Would complete Mercantile Building and advance Union Square
� Could provide opportunity for additional loft conversion
� Form of luxury condominium development and mid-rise building
� Should be near major employers with waterfront views
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Housing Rental Market Potential
Demand for subsidized rental housing remains strong with significant waiting lists
No significant demand for additional student housing in next fewyears
Downtown Housing Survey indicates interest in additional market-rate rentals
� Gannon University enrollment appears to be stabilizing
� Additional on-campus housing projects would likely accommodate growth
� Rental portion of Union Square project could test this demand
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Retail Development Potential
A new 55,000 SF supermarket targeted largely to meet the needs of Greater Downtown residents
54,000 SF of new restaurant space, continuing growth in the capture of the regional dining market
25,000 SF of women’s and children’s apparel, clothing accessories, and shoes to expand specialty clothing niche
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
28,000 SF of retail to meet downtown resident needs, including furniture, basic electronics, and pet supplies
21,000 SF of strategically-clustered specialty stores to capture regional market, including home furnishing stores, gift shop, jeweler, art supply store, and toy/hobby store
Retail Development Potential
15,000 SF of leisure-oriented specialty products to capture unmet needs of Downtown students and employees, including computer/ software store, game store, bike shop, and running store
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Office Market Potential
Assuring that large employers have adequate potential for expansion
Developing the capacity to market Downtown to external users by identifying specific sites for the development of new Class A space
Upgrading and converting warehouse and/or some Class B space to office condominiums to meet needs of smaller (medical?) firms
Converting surplus of Class B space to other uses to tighten up market and encourage improved maintenance
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Hotel Market Potential
Introducing 90 to 100 rooms annually to capture on-going growth in room-night demand
Opportunity to support growth of convention business with addition of second more price-sensitive hotel within walking distance of Convention Center
Encouraging reinvestment and/or repurposing of older, less competitive current hotel properties
Downtown Development Opportunities
Charting Downtown Revitalization in the Flagship City
Questions/Discussion